OUST - Ouster - Has Its Flaws But Don't Write It Off
2024-02-07 17:18:49 ET
Summary
- Ouster has been trimming its cost base quite effectively, and with Velodyne production shifting to Thailand, the economics could improve even further.
- The global LIDAR market is expected to grow at a commendable pace of 22% for the next few years, but Ouster's expected pace of growth will trounce that (avg:49%).
- Valuations look dirt cheap, and we appreciate the risk-reward on the charts.
Introduction
The micro-cap stock Ouster, Inc. ( OUST ), a specialist in the field of LIDAR sensors, which are used in terrains such as automotive, industrial, robotics, and smart infrastructure, has been a source of great wealth destruction for its investors. Incorporated in 2015, OUST came to the bourses around six years later, and since then it has lost a massive 95% of its value, even as the broader markets (as represented by the VTI ETF) have delivered over 23% returns during the same period....
Ouster - Has Its Flaws, But Don't Write It Off